AEC Feed

After sealing major cooperation agreements in various sectors, including infrastructure, Japan and Indonesia are bringing their business partnership to the next level by teaming up to boost relations between and the performances of their small and medium enterprises (SMEs).
On Wednesday, business organisations representing the two countries set up the so-called “Indonesia-Japan Business Matching Support Desk” , which is aimed at helping SMEs from the two countries to boost exports and imports.
The desk is jointly managed by representatives from the Indonesian Chamber of Commerce and Industry (Kadin) and various Japanese business communities. It will help SMEs from the two countries to list and match demand through websites and database developed by the Japanese. - The Jakarta Post

Payout for property owners ‘too small’
Laos’ Minister of Public Works and Transport Bounchan Sinthavong said that $74 million(Bt 2.6 billion) had been allocated for compensation payments towards demolitions to make way for the railway, but he thought this amount may be insufficient. 
The compensation to be paid to the owners of parcels of land and buildings that will be used or demolished to make way for the Laos-China railway may not be enough. 
Ministers addressed this issue at the National Assembly’s ongoing debate session on Wednesday, answering questions put by Assembly members concerning the compensation to be paid to property owners living in areas where the railway will be built. 
Minister of Public Works and Transport Dr Bounchan Sinthavong said that 500 million yuan (about 599 billion kip) had been allocated for compensation |payments, but he thought this amount may be insufficient. 
“To ensure that the many people who will be affected by the railway will receive compensation, we have negotiated payments with the Laos-China Joint Venture Company,” he said. - Vientiane Times

Laos warns unlawful financial institutions 
Governor of the Bank of the Lao PDR, Dr Somphao Phaysith, told the ongoing ordinary session of the National Assembly (NA) that 24 institutions have been found acquiring deposits illegally.
Illegal financial institutions that have sourced funds by offering abnormally high interest rates will face legal measures, the governor of the central bank has warned.
Governor of the Bank of the Lao PDR, Dr Somphao Phaysith, told the ongoing ordinary session of the National Assembly (NA) that 24 institutions have been found acquiring deposits illegally. He said the bank has issued a notice instructing these institutions to cease their illegal activities, but some are still operating.
Dr Somphao was responding to questions raised by NA members after learning that these financial bodies had carried out unlawful campaigns to persuade people to deposit money with them. Some entities have offered interest rates as high as 9 per cent a month. 
NA members raised concerns over the potential risks, fearing that people will be tempted by such offers and end up losing their money.- Vientiane Times

Tough times ahead for loans in Vietnam 
A senior official of the Vietnam’s Ministry of Finance (MoF) says the country needs to tighten its management of official development assistance (ODA) loans and mobilise private sector capital to ease the burden of public debt.
Hoang Hai, deputy head of the Department of Debt Management and External Finance told a press conference held by the ministry earlier this week that beginning in July 2017, Vietnam may not enjoy preferential World Bank ODA loans, which have long been a major source of capital. It would likely be excluded from the list of countries receiving concessional loans from WB's International Development Association as it has become a middle-income country since 2010.
Instead, the country must work with less preferential loans or loans at market conditions. In addition, for existing ODA loans, their repayment period will be halved or their interest rates will be increased to between 2 and 3.5 per cent, instead of the average of below 1 per cent in the past.
Hai said MoF and WB are working to compile different scenarios for quick repayment and assessing the shift’s impacts to the national budget. - Viet Nam News